The North West Provincial Legislature’s Portfolio Committee on Local Government and Human Settlements led by Hon. Motlalepula Rosho has expressed serious concerns about the performance and continuous disclaimers by most of the municipalities under Ngaka Modiri Molema District.
This came after the Committee held a meeting with Mahikeng; Tswaing and Ditsobotla Local Municipalities, and Ngaka Modiri Molema District Municipality over their 2013/14 financial year audit findings and annual reports.
In March 2015, the district municipality was placed under second administration in terms of Section 154 of the Constitution after being put under Section 139 (1)(c) from September 2014 to November 2014.
According the Deputy Business Executive at the Office of the Auditor-General, Mr. Schalla Van Schalk Wyk, in the year under review, Ngaka Modiri Molema District Municipality received a disclaimer audit opinion with matters of emphasis on instability or high vacancy rate in key leadership and management positions; key officials lack appropriate competencies and there is lack of consequences for poor performance and transgressions. “Mahikeng Local Municipality received a qualified audit opinion on matters of emphasis on non-compliance with laws and regulations and lack of municipal commitment on addressing prior year audit findings,” said Mr. Van Schalk Wyk.
The Committee Chairperson, Hon. Motlalepula Rosho said the Committee is worried about continuous disclaimer audit opinions as the municipalities fail to provide the Office of the Auditor General with relevant audit evidence and documentation, and address audit findings.
“There are many instabilities as many officials in some of these municipalities are on acting capacities. Failure to present close-up reports from previous administrators in the district municipal council has worsened its performance and did not assist the new administrator to change the status quo.
“It is worrying that the administration team is not involved on investigations instituted by the Department of Finance, Economy and Enterprise Development through PricewaterhouseCoopers and there has been failure take action on fruitless, wasteful and irregular expenditure. We are also concerned about the role of the Department of Local Government and Human Settlement and Department of Finance, Economy and Enterprise Development on failure to appear before the Committee to present a report on support given to municipalities,” said Hon. Rosho.
The Administrator of the district municipality, Ms. Nono Dince said the weekly audit steering meetings are aimed at addressing audit findings.
“The administration team will investigate the root causes of fruitless, wasteful and irregular expenditure and take action to recover amounts from the responsible officials. We will also develop a proper document management system and train supply chain management officials on laws, regulations and compliance,” said Ms. Dince.
The Committee requested Mahikeng Local Municipality to submit a report on non-payments of councils and ward committees, and Tswaing Local Municipality should submit a progress report on hand-over report of previous administrators in the municipality. Ditsobotla Local Municipality provide close-up report and terms of reference of two (2) previous administrations. “During an interaction with these municipalities, we observed that senior managers including chief financial officers; municipal managers and administrators do not have relevant expertise which will change their situations and improve performances. In Mahikeng Local Municipality where the Acting Municipal Manager has relevant qualifications, we are worried and not confident that the three (3) he was allocated to change the situation is not adequate enough,” said Hon. Rosho.
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